Investors' boldness masks reality: plan study.(John Hancock Financial Services survey)

National Underwriter Life & Health-Financial Services Edition, January, 1996 by Niedzielski, Joe

A survey of 803 defined-contribution plan investors reveals that, although 69% feel their investing acumen has improved since Jan 1995, many are still misinformed or ignorant about investment principles. The most glaring deficiency is in the area of fixed income. Thirty-five percent of respondents were under the impression that bonds cannot lose money and many did not know the correct time to transfer funds to bonds.

While 69 percent of respondents in a recently released study consider themselves more knowledgeable investors than a year ago, a disconcerting amount revealed false assumptions regarding risk and investment vehicles.

For example, 35 percent of respondents incorrectly believe that bond funds cannot lose money, while another 10 percent said they didn't...

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